Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
R.B. Day
(613) 957-2136
19(1)
June 21, 1990
19(1)
We are writing in reply to your letter of April 2, 1990 wherein you requested our views regarding the possible application of the General Anti-Avoidance Rule (GAAR) in the situation described therein.
OUR COMMENTS
Since the situation described in your letter appears to involve actual taxpayers and proposed transactions, that could best be considered by way of an advance income tax ruling request, we are unable to comment on the specifics of the series of transactions described therein. We are of the view, however, due mainly to the fact that there appears to be a clear intention to carry on the family farm business following the move to a rural area, that such a series of transactions would not normally be considered to be a misuse or abuse of the Act as envisioned by section 245 of the Income Tax Act. We caution however that the foregoing is merely an expression of our opinion and is not binding on the Department.
Subsequent events and a review of all proposed documents and proposed transaction may very well indicate that the application of section 245 is warranted.
We trust that these comments will be of assistance to you.
Yours truly,
A. Glen Thornley
for Director
Business and General Division
Specialty Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
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